MARANA, Ariz. (KGUN) — The future of Marana’s downtown project faces uncertainty as a referendum effort is underway.
MORE ABOUT THE PROJECT | Marana closer to new downtown with 60-acre development
The town council approved a lease and development agreement for roughly 20 acres located near Marana Main and Civic Center at the end of last year, but now Arizonans for Responsible Development, which is sponsored by Worker Power, is working to get referendum signatures, which could bring this project to voters.
“I was shocked. I had never in my wildest dreams considered that they would pull a referendum on this,” said Marana Mayor Jon Post.
He says the project has been a focus of the council for years. This resolution was adopted unanimously in December.
Last week, a Serial Number Petition application was submitted to the town. Worker Power sent a statement to KGUN 9 saying in part:
“Our goal is to change the conversation about economic development and challenge elected officials to build economic policy on a foundation that centers the interests, needs, and opinions of working families and communities.”
The statement goes on to question tax reimbursements for the project’s developer and says the taxes can go elsewhere.
Mayor Post says that buildings will eventually be owned by the town.
“Essentially, he’s building it on his dime for us, and we’re just paying him back,” Mayor Post said.
Breakdown of the project’s cost:
According to the town, the developer, Marana Urban LLC, will pay a lease payment every month. The lease is 75 years, with an option to renew for 25 more.
The town will reimburse the developer for the cost of the buildings, which is estimated to be $84 million. This will be done through retail sales tax and construction sales tax reimbursements.
- 45% of retail sales tax is collected on the property
- 75% of the construction sales tax is collected on the property
According to a presentation at the December council meeting, citing an independent third-party report, in the first 20 years of the lease, the project is expected to generate approximately $37.5 million in direct tax revenues for the town and $180.1 million over 75 years.
Marana will be responsible for funding public infrastructure. Funding will primarily come from the bed tax fund and the Downtown Marana Reinvestment Fund.
The Town will waive all town plan review, inspection, construction, and building permit fees, according to the December 16 agenda item. Which Worker Power doesn’t agree with, saying in part:
“We feel the incentives are excessive and the developer should be responsible for these costs.”
“The town is ultimately getting a huge return in its investment,” said Mayor Post. “Ultimatley this downtown is going to be worth over $300 million, and the town will own it.”
The filing deadline with the 1,360 required signatures is Friday, January 16.
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Madison Thomas joined KGUN 9 in July of 2023 as a multimedia journalist. She graduated from Arizona State University in May of 2023 with a degree in journalism and mass communication. She has lived in Arizona her entire life and grew up in Douglas. Madison is thrilled to share the stories from the community she grew up in. Share your story ideas and important issues with Madison by emailing madison.thomas@kgun9.com or by connecting on Instagram, Twitter or Facebook.
